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The Central Bank of Nigeria (CBN) has bolstered its supervisory role over Nigerian banks operating internationally by signing Memoranda of Understanding (MoUs) with foreign regulators in countries where these banks have established subsidiaries. This initiative aims to enhance financial system stability through the implementation of regular stress tests, risk-based supervision, and early warning systems.
Sidi-Ali, a representative of the CBN, reassured the public of the bank’s commitment to ensuring the stability and reliability of Nigeria’s financial system. “The CBN wishes to reassure the public of its unwavering commitment to the stability and reliability of the Nigerian financial system,” she stated, urging depositors to maintain confidence in the security of their funds due to these strengthened regulatory measures.
Several Nigerian Tier-1 banks have significantly expanded their international footprint, with subsidiaries across Africa, the United States, Europe, and Asia. First Bank of Nigeria operates in countries like Ghana and The Gambia, while other major banks such as Zenith Bank, United Bank for Africa (UBA), and Access Bank Plc have widespread operations across the African continent.
Access Bank, in particular, has extended its reach into the United Kingdom and recently secured a provisional licence to establish a subsidiary in Namibia. The growing international presence of Nigerian banks highlights the critical role they play in various African economies. For instance, Liberia’s Vice President, Jeremiah Kpan Koung, recently noted that Nigerians own four of the country’s major commercial banks.
The CBN’s collaboration with foreign regulators through these MoUs is crucial in maintaining a robust and secure banking environment, both domestically and internationally. By ensuring that Nigerian banks adhere to a sound regulatory framework, these agreements support financial stability and growth.
“The CBN recognises the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure,” the apex bank stated, reaffirming its commitment to safeguarding public funds and maintaining trust in Nigerian banks globally.
This enhanced cooperation with international regulators is expected to ensure that Nigerian banks continue to operate within a strong regulatory framework, reinforcing their role in supporting financial system stability and growth both at home and abroad.
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